Palantir Technologies Slides as Wall Street Braces for Earnings

Palantir Technologies ( (PLTR) ) has fallen by -12.47%. Read on to learn why.

Palantir Technologies shares fell 12.47% over the past week as investors braced for a potentially volatile fourth-quarter 2025 earnings release on February 2. Expectations are high: Wall Street is forecasting earnings per share of $0.23, up 64% year-over-year, and revenue of $1.34 billion, up 62%, driven by rapid adoption of the company’s Artificial Intelligence Platform (AIP) and solid momentum in both commercial and government businesses. Options pricing underlines the tension, with traders positioning for a double‑digit move in either direction once results hit.

The stock’s pullback comes against a backdrop of sharply divided analyst opinion and worries that Palantir’s strong AI narrative is already fully reflected in the share price. Bears, such as RBC Capital’s Rishi Jaluria, have reiterated Sell ratings, flagging slowing commercial contract activity, intensifying competition, and growing frustration among retail investors over the lack of capital returns despite Palantir’s sizable cash balance. These concerns have made the recent rally look vulnerable, leaving little margin for disappointment if growth shows any signs of cooling.

At the same time, bulls remain vocal, pointing to Palantir’s status as a key AI and data platform for both governments and enterprises. Analysts at firms like Citi and Bank of America have highlighted accelerating AI adoption, continued strength in government contracts, and improving commercial growth as reasons to stay positive into 2026. Overall, Wall Street sits in the middle with a Hold consensus on Palantir Technologies and an average price target implying meaningful upside from current levels—setting up this week’s sell-off as a classic reset of expectations ahead of a make‑or‑break earnings report.